• BREAKING: White House to Announce “Biggest Tax Cut in History”

    The Trump Administration is preparing to announce “the biggest tax cut in U.S. history” today at 1:30 p.m.

    We will carry the announcement live here when it happens:

    From the Wall Street Journal:

    Treasury Secretary Steven Mnuchin said Wednesday morning that the administration wants permanent policy changes, but that temporary cuts could be considered, too.

     

    “This is going to be the biggest tax cut and the largest tax reform in the history of our country,” he said at a conference in Washington sponsored by The Hill newspaper.

    Business Insider reports that the key provisions in the proposal are:

    • Corporate tax rate of 15%: Such a rate would deliver on Trump’s campaign promise; the current federal statutory rate is 35%.
    • Allows pass-through rate for business owners: Instead of self-owned businesses being taxed at the personal income rate, business owners would have incomes from operations taxed at the 15% rate. So if you own your own business, income from that business would be taxed at the corporate rate. According to The Times, that could apply to the Trump Organization.
    • No border-adjustment tax: The tax on imports was favored by House GOP leaders such as Speaker Paul Ryan and Kevin Brady, the chair of the Ways and Means Committee. Mnuchin said the White House talked to Ryan and Brady but thought the tax did not “work in its current form.”
    • A slight adjustment to individual tax rates: Mnuchin said the top income-tax rate would be in the “mid-30s,” down from its current 39.6% level. According to a rport from Bllomberg, White House officals said there will be three tax brackets with rates of 35%, 25%, and 10%.
    • A change in tax exemptions for the middle class: According to The Times, the plan will propose an increase in the standard deduction for individuals.
    • No infrastructure spending: Reports on Tuesday said Trump was considering including infrastructure spending in the plan to try to win over Democrats. Mnuchin denied the report in the speech, saying the proposal would be “just a tax plan.”

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